Top Reasons Why You Should Automate Accounts Payable
While technology has made Accounts Payable payment automation a standard for a number of organizations, 60 % of corporations in the USA are not aware of the countless advantages of A/P automation. Leveraging software programs to apply the method in manner that is seamless and trouble-free, the following are our main 5 reasons why you should automate.
Accounts Payable automation enables A/P to accurately project its outstanding cash requirements, therefore eliminating estimation. With better transparency from A/P automation, awareness into the process allows your A/P department to deal with tasks and priorities that can impact your department with value added activities.
Reinforce internal controls
A manual A/P method is vulnerable to fraudulent activity. You increase the threats of human error, overdue payments, missing invoices, and the dreaded rush invoices. An automated A/P process embeds controls that avoid and discourage fraud.
The outdated manual practice suffers from insufficient visibility, by which can result in neglecting to acknowledge a segment of risks. This could understate operating expenses thereby overstate earnings, which could result in accounting and reporting malfunctions and ultimately fraudulent activity. A/P automation produces a total audit trail of each and every part of the process, and enables management to swiftly fix possible problems.
Your suppliers would like a more beneficial payment method. More efficient payments result in special offers and savings for you. When you pay your customers by means of virtual card, which is a single issued card for a one-time use, you receive monthly cash back incentives. It’s jointly good for Accounts Payable and Accounts Receivable. Your clients experience more efficient, seamless payments and your A/P Department pivots to a profit generator.
Prevent error, delay, and unneeded costs with an automated A/P process. A/P mistakes are expensive and get more info use up many resources to manually resolve. With payment automation, you will see where, when and why mistakes occurred. Unlike the manual procedure, with automation you’ll be in a position to systematically address and reduce issues to improve quality.
A/P payment automation can save you cash, earn you additional earnings, reduce the risks of fraud, provide your operations more transparency, fulfill your customers’ needs, and advance the overall quality of your A/P processes.